DISCOUNTS .... the new age culture!

Strangely, discounts have been a BIG part of our life's. Whether we need it or not, it's there. For some ..... no BIG DEAL. For the majority, heaven's yeah. The more the better.

Just today, i was at a golf retail shop going about my usual business and i overheard a customer who was haggling with the shop staff on a t-shirt that was the "last available one" there. She insisted and haggled hard for further discounts beyond the 50% markdown already given. Her main argument was of course it's the last one, so give her more discount and she will take it. The staff politely said it was not his call as he wasn't the owner and he was merely following standard operating procedure. If it doesn't sell, his duty was to send back HQ all unsold items for their further action. But never mind his logical explanation .... the lady went on harassing him to agree at more than 50% to conclude the deal. She sure was feisty about wanting that t-shirt at more than 50%. That much i give it to her i.e. determination and persistency.

It's a fact that all (i stand corrected), majority of businesses in the world would do well surviving on discounts offered to attract customers. Of course there's exceptions to the rule, in that at times niche/premium prices bring about high-end customers. But here's the thing. How much is enough? How much discount can a business offer before it starts hurting their bottom line? Sure, the rationale is that if there's too much holding stock lying around, it's only smart to move items at rock-bottom prices to attract buyers to come and spend. And that would bring in the much needed cash injection albeit minimal or no profit margins.

There's a collective agreement within the business industry that all competitors should stand united and provide the best services at attractive item prices. This way the pricing is controlled and it ensures fair competition. And furthermore, collectively, all will make sizable profit margins. Imagine if a few of them decide to go on a price war .... then, there would be chaos. Price slashing will benefit the big players and eventually the small players being unable to compete will close business. It will hurt everyone's bottom line.

Big players know that on some items they are able to slash prices massively as their shipment are in container loads. Better discount structure are being offered by the Principals for such big orders, so they can afford to markdown drastically. And these days apart from 50% and more discounts, freebies are given too. They only need a few items in their shop to lure customers in and once there, customers tend to buy other things on impulse at normal prices or minimal discounts. Of course the smaller players who buy these same items at smaller quantities and unfavorable discount structures from the Principals would NEVER BE ABLE to match the big boys attracting customers at ridiculous prices while giving away freebies.

To the consumers, YEAH ! Competition amongst retailers it's a good thing. More and better discounts offered are always welcomed. The question is are these discounts genuine? Let's face it. 50%-70% off retail is mouth watering stuff, don't you think. I would be able to buy 2 items for the price of one on non-discount days. Won't i be happy? You bet i would, especially if i were to care for a family of 5 whose needs are these sort of items. Do you think discounts are always genuine? I personally feel the reputable retailers do indeed offer genuine discounts. These discounts could be on some older models clearing way for newer stock arrivals. And if yes, do you really need to buy items just because it's CHEAP. Saving it for the future are we?